Singapore's personal tax is famously light: resident rates run from 0% to 24%, the first S$20,000 of income is tax-free, and there is no tax on capital gains, dividends, or (for individuals) bank interest, and no inheritance tax. What does take a big slice of your pay is CPF, the compulsory savings scheme. This guide covers the tax bands, the reliefs, and how CPF fits in. You file once a year with IRAS, usually pre-filled.
There is no monthly PAYE withholding for most residents — you file an annual return and pay the assessed amount (you can spread it over 12 months by GIRO). The first S$20,000 of chargeable income is tax-free. Then the rate rises in steps: 2% on the next S$10,000, 3.5% on the next S$10,000, 7% up to S$80,000, 11.5% up to S$120,000, 15% up to S$160,000, and on up to 24% above S$1,000,000.
'Chargeable income' is your income after allowable reliefs. Only income earned in Singapore is taxed for most people; foreign income received in Singapore is generally not taxed for individuals. There is no tax on capital gains, on one-tier dividends, or on interest from a Singapore bank.
For an employee aged 55 or under, CPF is 20% from you and 17% from your employer, on wages up to the Ordinary Wage ceiling (S$8,000 a month from 2026). Your 20% is deducted from your gross pay before you see it, and your own CPF contribution is deducted from your taxable income, so it lowers your tax too. The money is not gone — it goes into your CPF Ordinary, Special and MediSave accounts for housing, retirement and healthcare.
MediShield Life premiums are paid from your MediSave. There is no separate unemployment or payroll social-security tax beyond CPF.
Common reliefs include Earned Income Relief, CPF Relief (your own contributions), the Supplementary Retirement Scheme (SRS) relief, CPF cash top-up relief (topping up your own or family members' Special/Retirement Account or MediSave), the Qualifying Child Relief, Working Mother's Child Relief, Parent Relief, and course fees relief. Total personal reliefs are capped at S$80,000 a year.
The two reliefs most people can act on are the SRS (contribute before 31 December for that year's deduction) and CPF cash top-ups. Both lock money away for retirement, so size them to your other goals — but for a higher earner the tax saving is immediate and substantial.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (CPF, the Monetary Authority of Singapore, IRAS, and the SDIC) before making a decision.
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